Shalimar Paints Ltd · NSE:SHALPAINTS
Shalimar Paints — Investor Presentation (November 2018)
24 slides from Shalimar Paints's investor presentation, Nov 18, 2018
Slide 1: Intimation of investors meet to exchanges
November 18, 2018 BSE Limited National Stock Exchange of India Ltd P.J. Towers, Dalal Street, Exchange Plaza, C-1, Block G, Mumbai - 400 001 Bandra Kurla Complex, Bandra (E), Mumbai – 400051 REFERENCE: SCRIP CODE - NSE-SHALPAINTS, BSE-509874 SUBJECT: INTIMATION OF INVESTORS MEET U/R 30 OF THE SEBI (
Slide 2: Shareholders' Presentation November 2018
Shareholders’ Presentation November 2018
Slide 3: Disclaimer
Disclaimer Certain statements in the presentation maybe “forward- looking” in nature. Forward-looking statements include statements concerning plans, objectives, goals, strategies, future events, future revenues or financial performance, capital expenditures, financing needs, plans or intentions rel
Slide 4: Contents
Contents Industry Overview Company Overview Critical Analysis Rebuilding Summary of Rights Issue 3
Slide 5: Industry Overview
Industry Overview 4
Slide 6: Indian paints industry
Indian paints industry Decorative Paint Industrial (75%) Industry (25%) Application Type of paint Type of paint Emulsions Protective Interior Wall Finish Distemper Auto OEM Enamels Auto Refinish Exterior Wall Finish Others Powder Coating G.I.P1 Interior & Exterior of Wooden & Metal Substrate Others
Slide 7: One of the best structural proxies to participate in India's robust economic growth
One of the best structural proxies to participate in India’s robust economic growth… Rising Urbanization Increasing Disposable Income % share of urban population Rising Middle Class Population 50% (In USD) >16,700 32% 26% 28% 24% 50 mn Middle Class 600 mn 3,300 to16,700 3% 4% < 3,300 '62 '72 '82 '92
Slide 8: Company Overview
Company Overview 7
Slide 9: Company Snapshot
Company Snapshot Company taken over in 1989 by current promoter; since then steady growth Historically reputed player in Industrial Domain vis-à-vis Decorative Segment. Presently Decorative Contributes to 2/3rd of the Sales Current Capacity at 3300 Kl, Production currently at 2400 Kl, scope to incre
Slide 10: PAN-India Manufacturing and Distribution Footprint
PAN-India Manufacturing and Distribution Footprint Sikandrabad (UP) 2002 10.2 Acres Distribution network with 5,300+ active dealers, 32 sales depots and 3 regional distribution centers across all four zones in India Nashik (MH) 1992 15 Acres (Under Reconstruction) Strategically located manufacturi
Slide 11: Comprehensive Product Portfolio
Comprehensive Product Portfolio Shalimar offers the entire spectrum of products across categories and price points catering to all types of customers in the decorative segment Shalimar’s Marginal Meaningful Presence revenue break- Presence up(FY17) Expansive Product Premium Portfolio Super Premium/
Slide 12: Critical Analysis
Critical Analysis 11
Slide 13: Impact on Financial & Operational performance
Impact on Financial & Operational performance Sales in INR CR 486 502 407 366 331 Revenue 299 FY08 FY09 FY10 FY11 FY 12 FY 13 Delivered a revenue CAGR of 11% from FY08 to FY13 12
Slide 14: Impact on Financial & Operational performance
Impact on Financial & Operational performance Loss of capacity led to a sequence of events that impacted overall performance and growth momentum Mar-14: Fire Nov-16: Fire incident in incident in Sales in INR CR Howrah Nasik CAGR Sep-17: Chennai 483 plant commissioned ( 11.6%) 433 403 350 Net Revenue
Slide 15: Rebuilding
SHALIMAR PAINTS
Slide 16: Rebuilding
Rebuilding Working Capital/ CAPEX – Planning to raise equity of 217cr Investment towards reinstatement of Nasik plant and RDC Working capital to cater increased operations Branding & Marketing 15
Slide 17: Rebuilding | Capacity
Rebuilding| Capacity Current • Nashik Plant which is under re- Capacity is instatement, many steps have been 3,300Kl and taken to avoid future unfortunate which would accidents increase to o Construction in record time 6,000Kl once o Provision to increase capacity with Nashik is little investment op
Slide 18: Rebuilding | Branding
Rebuilding| Branding Demand Influencers Demand Generators Dealers Painters Employees Architects Consumer ● Dealer Dinners ● Painter CRM ● Salesman Kit ● Trade Show ● Website + Blog/ SEO ● Dealer Giveaway ● Painter Sell out ● Corporate Videos ● Architect Dinner ● Social / YouTube / SEM ● Painter Well
Slide 19: Rebuilding | Distribution
Rebuilding| Distribution 18% North 40% East 14% West South 28% To enhance distribution in under-penetrated markets i.e. south and west zones 18
Slide 20: Research & Development
Research & Development India’s first in- house R & D to get recognition from Department of Science and Industrial research ( DSIR), Govt of India in 1979 Spread over 10000 square feet and equipped with world class infrastructure and certified ISO 9001 Many product are approved by national and
Slide 21: Summary of Rights Issue
Summary of Rights Issue 20
Slide 22: Summary of Rights Issue
Summary of Rights Issue Total Issue The Total number of Rights Equity Share to be issued: 33,747,518 Equity Shares The Rights Issue to be offered at a price of Rs. 64.50 only per Rights Equity Offer size Share (including a premium of Rs. 62.50 only per Rights Equity Share) Rights Entitlement Ratio i
Slide 23: Questions
SHALIMAR 22 Wy PAINTS:
Slide 24: Thanks
SHALIMAR 23 Wy PAINTS:
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